A solid digital foundation for manufacturers is important to fully leverage AI and other emerging technologies.
Learning Objectives
- Understand why a solid digital foundation is essential for manufacturers to adopt artificial intelligence (AI) and other emerging technologies effectively.
- See how digitization and data management enable AI to deliver meaningful insights and improve manufacturing efficiency.
- Learn how small, manageable AI point solutions can provide immediate benefits, even for small-and mid-sized businesses, when supported by a strong digital backbone.
AI insights
- Artificial intelligence (AI) is transforming manufacturing by automating tasks, predicting maintenance needs and optimizing supply chains, but without a strong digital foundation, its full potential remains out of reach.
- To truly benefit from AI and future innovations, manufacturers must first digitize their operations, ensuring clean, structured data that enables smarter decision-making and greater efficiency.
- Digitizing operations with systems like manufacturing execution systems and internet of things-enabled equipment enables factories to capture structured data, unlocking long-term success.
Manufacturing is changing fast and artificial intelligence (AI) is playing a role in that transformation by automating tasks, predicting maintenance issues and improving supply chains. With AI in manufacturing projected to reach $20.8 billion by 2028, there’s no question that AI is a key technology of the future. However, like any cutting-edge technology, its success depends on having the right digital foundation.
Many factories still rely on outdated, paper-based systems, making it hard to collect, organize and use data effectively. This presents a major hurdle when trying to implement new tech solutions. It isn’t just about upgrading equipment, it’s about creating a system that captures and manages data in a way that drives efficiency and innovation. Without digitization, adopting AI is like trying to run before learning to walk; no matter how advanced the technology, it’s only as useful as the data supporting it.
Those who start now won’t just get the most out of AI, they’ll be prepared for whatever tools come next.
Factories are drowning in data , but can’t use it
The hard truth? AI is not a silver bullet and it won’t be the last major advancement to shake up the industry. Factories generate enormous amounts of data daily, from machine performance metrics to supply chain updates, but much of it is unstructured, siloed or difficult to access.
According to industry estimates, over 70% of manufacturing data goes unused because companies lack the infrastructure to capture and integrate it effectively. Without a centralized system to process and leverage this data, AI cannot deliver meaningful insights or drive efficiency.
As technologies like robotics and internet of things (IoT) continue to evolve, manufacturers without a solid digital backbone will struggle to keep pace, missing out on opportunities to enhance operations and maintain competitiveness. They’ll continue to suffer from an acceleration of the current death by 1,000 cuts of losses.
Clean, reliable data is essential for AI and other technologies to work effectively and at a reasonable cost. Manufacturers need to focus on digitization and better data management.
Why the digital backbone and AI matter
Moving to digital systems is essential for capturing clean, organized and timely data. Solutions such as digital work instructions, manufacturing execution systems and IoT-enabled equipment automate data capture to improve speed and accuracy while enabling real-time insights. The combination of them ensures that data is contextualized, addressing the “what, when, why and how” of each production step and dramatically reducing the cleaning burden on datasets for AI tools.
Without this level of digitization, manufacturers will lose out on the full potential of emerging technologies. Structured data isn’t just a luxury; it’s essential for empowering AI and driving the operational improvements that will define the future of manufacturing.
AI solutions for industrial businesses
A strong digital backbone is crucial, but it’s not the only challenge that keeps factories from adopting AI. Many manufacturers are holding back from investing in AI systems because they worry about the cost, complexity and time commitment associated with large-scale deployments.
This is where point solutions come in. These AI-powered tools, such as smart cameras and sensors, are an easier entry point that allows manufacturers to see the benefits of AI in action.
However, their effectiveness still relies on a strong digital foundation. These solutions integrate easily into existing workflows, require minimal investment and demand few infrastructure changes, making them particularly appealing to small and mid-sized businesses.
When implemented effectively, point solutions can supercharge operational efficiency by providing real-time insights that drive better decision-making. They offer immediate, practical benefits, addressing specific operational needs, improving data collection and giving manufacturers a taste of digitization’s potential without the burden of a complete digital overhaul.
For example, Overview AI, which serves more than 100 customers across 10 countries and three continents, is a solution that provides a camera-based inspection system for real-time, automated visual analysis. By integrating AI into the inspection process, Overview AI helps manufacturers detect defects, monitor machine health and enhance quality control.
This integration drives significant operational improvements, demonstrating AI’s ability to deliver measurable results in manufacturing environments. It also shows how even incremental changes can boost efficiency and performance, making it easier for manufacturers to begin their AI journey. Yet again, these immediate benefits are only achievable once a solid digital backbone is in place.
Digitization, AI moving forward
If manufacturers want to remain competitive, digitization must come first. Without it, AI will be little more than a costly, underused tool. But once digitization is in place, manufacturers can adopt AI tools at the pace and scale that best fits their needs and budget.
Digitization is already the backbone of manufacturing’s push toward global supply chain transparency, enabling factories to track every nut, bolt and part produced. This kind of visibility is becoming even more important, especially with the European Union’s introduction of digital product passports, which require digital records of a product’s origins, materials and environmental impact.
Manufacturers who fail to digitize now risk not only falling behind but also becoming invisible in an increasingly data-driven, AI-powered future. Innovation waits for no one and the digital gap will only continue to widen.
But by taking the first step today, whether through small AI point solutions or modernizing factory floor systems, factories will position themselves for success, both in AI and whatever comes next.
